A real estate agent in Ohio is advising a client who wants to know how the CAUV program affects property taxes when farmland is located in a rapidly developing suburban area. The agent should explain that under CAUV:
Correct Answer
D) The property is taxed based on its agricultural use value, which is significantly lower than market value in developing areas
The CAUV program values qualifying agricultural land based on its current agricultural productivity, not its development potential. In rapidly developing suburban areas, the difference between CAUV value and market value can be very significant, providing substantial tax savings to farmers who continue agricultural use.
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